Watch VXX
Today the market is short-term oversold. The breadth of this selling is leaving few sectors and ETFs showing any type of leadership. Also any growth related leadership is not appearing. In fact, many markets are behaving as if a global economic slowdown is occurring. I would have expected some end-of Q3 window dressing but that didn’t appear so it’s likely going to take a surprise move by the Fed to spur a large upside move.
For the next few days the reality is the market is oversold as are many good stocks. But, use caution via smaller size until we start seeing things back to normal. Especially watch VXX – it’s behaving counter to the way its behaved for the past two years. Once it starts dropping again it will be a sign that markets are normalizing.
Today’s Potential Opportunities on Further Pullbacks:
ETFs: QQQ